How much money are you "spending"?

"Spending" is in quotation marks because I just had a look at how much money we're spending other than PI costs and other than PPOR costs.

Turns out it's between $50k and $60k a year. This is for a family of three with a 2-year-old.

This is actually quite encouraging to me. This means that once we have our house paid off, we'd either just have to earn $35k per year each (before tax) or get our investment income to be $70k more than our investment outgoings (including principal repayments obviously). Or a mix of the two.

Not really that difficult in the long run, especially given that we already have 10 (very low value) IPs.

My plan is to be able to go down to three days a week within seven years and it looks like this is definitely achievable, especially once COVID blows over and we can get our planned developments happening.

My path to financial independence is contentment, being happy with what we have. I'll never own a sports car or a boat (well, maybe a dingy), designer clothes or mansion, but I'm very happy with that, I don't need or even want any of those things.

Sorry, I think I went off track a little bit, but it was actually fairly informative for me to write this!

 

Discretionary or fixed?

Fixed, way less than my income.
Discretionary, less than my income.

 

I’m looking to have a big pot of super money over time. The IPs and shares should keep going up in value. And if **** was to hit the fan, I take comfort in knowing there is roughly $2 mill simply sitting in the value of my home Go Sydney realestate. I started investing in 2005 with a unit bought at $250k. At that time I would never in my imagination have thought we’d have a >$2 mill home now.